What is one key purpose of health insurance?

What is one key purpose of health insurance?

• A. To cover automobile repair costs
• B. To reduce the financial burden of healthcare costs
• C. To provide life insurance benefits
• D. To offer discount programs for wellness services

Answer: (B)

Health insurance primarily serves to reduce the financial burden of healthcare costs for individuals and families. By paying a monthly premium, individuals gain access to a network of healthcare providers and services, which significantly mitigates the high out-of-pocket expenses associated with medical care. It helps manage costs related to hospital visits, surgeries, medications, and preventive care, ensuring that necessary medical services are more affordable and accessible. This emphasis on the reduction of financial strain allows individuals to seek treatment without the worry of exorbitant costs, which is particularly important in the face of unexpected health issues. Access to healthcare becomes more equitable when individuals are not solely reliant on personal finances to cover medical emergencies or ongoing treatments.

Health insurance primarily serves to reduce the financial burden of healthcare costs for individuals and families. By paying a monthly premium, individuals gain access to a network of healthcare providers and services, which significantly mitigates the high out-of-pocket expenses associated with medical care. It helps manage costs related to hospital visits, surgeries, medications, and preventive care, ensuring that necessary medical services are more affordable and accessible.

This emphasis on the reduction of financial strain allows individuals to seek treatment without the worry of exorbitant costs, which is particularly important in the face of unexpected health issues. Access to healthcare becomes more equitable when individuals are not solely reliant on personal finances to cover medical emergencies or ongoing treatments.